Calculate predetermined overhead rate and unit cost
Response to the following problem:
Bentley estimates manufacturing overhead of $1,800,000 for 2013 and will apply overhead to units produced based on 720,000 machine hours. During 2013, Bentley used $1,450,000 of raw materials, paid $2,282,500 of direct labor, generated 715,000 machine hours, and produced 2,000,000 units.
Required: Calculate Bentley's predetermined overhead rate and cost per unit of production for 2013.